Desperate search is launched for missing sailor after boat overturned off Lady Elliot Island leaving his two passengers clinging to the side

A desperate search is underway for a missing man after a boat overturned, spilling out its passengers - but only two were found clinging to the vessel.

The yacht had three people on board and overturned off Lady Elliott Island near Gladstone on Sunday morning.

It is understood the yacht was travelling from Yeppoon to Brisbane when it upturned.

The boat was about four nautical miles south of Lady Elliot Island when an EPIRB was activated about 5am, reported The Courier Mail.

A search and rescue operation involving multiple vessels, police divers and a Bundaberg-based rescue helicopter was launched by emergency services.

 More to come